Energy Cabinet Secretary Opiyo Wandayi on Wednesday, March 25, accused some Oil Marketing Companies (OMCs) of creating a man-made fuel shortage in Kenya.
Speaking on the ongoing fuel supply situation, Wandayi said certain OMCs were hoarding fuel products in anticipation of price increases following developments in the Middle East.
He emphasized that the government would maintain pump prices as set by the Energy and Petroleum Regulatory Authority (EPRA) in its March 14 review.
Energy Cabinet Secretary Wandayi Points Finger at Oil Marketers over Fuel Shortages in Kenya. Photo: Courtesy.
The Cabinet Secretary warned that any attempts to withhold fuel or manipulate supply would be in violation of licensing obligations, stressing the need for OMCs to maintain a continuous fuel supply and adhere to the gazetted prices.
“We note with grave concern reports of product hoarding and speculative withholding of stocks by some oil marketing companies in anticipation of price movements. That conduct is commercially opportunistic, contrary to the public interest and is in direct breach of licensing obligations. All licenced OMCs are strongly reminded of their legal obligation to maintain continuous supply and release products at EPRA gazetted prices,” Wandayi noted.
Wandayi reiterated that Oil Marketing Companies (OMCs) caught hoarding fuel could face serious sanctions from the Ministry of Energy.
He assured Kenyans that there is no fuel shortage in the country and urged motorists to avoid panic buying.
According to Wandayi, the entire fuel supply chain from importation and storage to pipeline distribution and retail is operating normally.
The Cabinet Secretary emphasized that Kenya’s fuel coverage remains sufficient even amidst ongoing tensions in the Middle East.
He noted that a Government-to-Government fuel supply agreement ensures continuous access to fuel products for the country.
The Energy Cabinet Secretary assured Kenyans that none of the Government-to-Government partners or international oil companies (IOCs) have reported difficulties in meeting their contractual fuel obligations.
He noted that these companies have the capacity to source and deliver fuel from multiple global suppliers, ensuring continuous supply.
The assurance came after concerns arose over fuel shortages at some petrol stations, amid threats from certain retailers to cut supply if pump prices were not adjusted to reflect the Middle East crisis.
